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Ordering policy for deteriorating items with in-transit deterioration and permissible delay in payments

  • Xi'an Jiaotong University

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

In the classical deterministic models of inventory replenishment policies for the deteriorating items, the in-transit deterioration is seldom considered. However, in practices, the length of lead time has a significant impact on the extent of deterioration of the fresh items. The paper proposes an inventory model in which products deteriorate in both in-transit and on-hand period with different deterioration rates under permissible delay of payment. Different facets of the permissible delays in payment were discussed. It is proved that there exists unique optimal ordering cycle to minimize the annual cost under every scenario. Numerical examples were conducted to illustrate the effectiveness of the proposed model. Results show that the optimal ordering cycle is affected by the length of lead time and the deterioration rates, as well as the credit period.

Original languageEnglish
Title of host publicationEducation and Management - International Symposium, ISAEBD 2011, Proceedings
Pages302-309
Number of pages8
EditionPART 3
DOIs
StatePublished - 2011
Event2011 International Symposium on Applied Economics, Business and Development, ISAEBD 2011 - Dalian, China
Duration: 6 Aug 20117 Aug 2011

Publication series

NameCommunications in Computer and Information Science
NumberPART 3
Volume210 CCIS
ISSN (Print)1865-0929

Conference

Conference2011 International Symposium on Applied Economics, Business and Development, ISAEBD 2011
Country/TerritoryChina
CityDalian
Period6/08/117/08/11

Keywords

  • delay payments
  • deterioration rate
  • transportation time

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